Syracuse opts in to New York State retirement incentives

Syracuse, NY -- Common Council voted today to offer pension incentives to city workers who retire by the end of the year.

The incentive packages, designed by New York State, allow employees to retire early with a reduced penalty or to retire with extra service credits. The city hopes to significantly reduce payroll by retiring about 20 percent of its eligible workforce -- 82 employees, said Ken Mokrzycki, city administration director.

The council approved two retirement packages by an 8-1 vote, with Councilor Lance Denno voting against them.

One package allows workers 50 and older to retire with one additional month of service credit for each year of service. So, an employee with 24 years of service would get two extra years in pension credit. The benefit equates to as much as 6 percent of an employee's final average salary.

The other package allows employees ages 55 to 61 with 25 years of service to retire before age 62 without a pension reduction.

Councilor Ryan McMahon, who chairs the Finance Committee, said the incentive packages will save money as the city looks toward a major gap in next year's budget. They may reduce or eliminate the need for layoffs next year, he said.

But Denno said the packages haven't been properly analyzed and that they could end up costing the city money if many of the retirees positions have to be filled.

Eligible employees must retire between Oct. 3 and Dec. 31 to receive an incentive.